Top Small-Cap Stocks Jump 20% in 2 Months

BOSTON ( TheStreet) -- The Under-the-Radar Portfolio of TheStreet's 10 favorite small-cap stocks has delivered big gains in a matter of weeks. It has advanced 20%, based on original recommendation dates, most of them this year. Here's a synopsis of performance.

10. Low-cost driller China North East Petroleum ( NEP) has fallen 12% since being featured in Under the Radar on Feb. 17. The company unexpectedly revised its financial statements to account for non-cash adjustments. The revision boosted 2008 profit but caused losses for the first two quarters of 2009.

8. Einstein Noah Restaurant Group ( BAGL), owner of specialty bagel eateries, has risen 3.6% since our Feb. 24 recommendation. This restaurateur is majority-owned by David Einhorn's Greenlight Capital, a value-oriented hedge fund. Its shares still trade at considerable discounts to industry averages.

7. Indiana-based insurer Conseco ( CNO) has jumped 17% since we featured the stock on Feb. 22. Conseco languished during the recession, but recently mounted a profitable turnaround. Hedge-fund managers David Tepper of Appaloosa management and John Paulson of Paulson & Co. own stakes in this insurer.

6. Mining-equipment maker Bucyrus ( BUCY) has risen 18% since we suggested it on Feb. 3. It just completed a purchase of the equipment-manufacturing business of Terex ( TEX). Bucyrus trades at a PEG ratio, a measure of value relative to expected growth, of 0.5. A PEG ratio below 1 signifies a bargain.

5. Spectrum Control ( SPEC), a maker of high-tech components, has gained 19% since our Feb. 4 pick. Spectrum recently announced solid fiscal first-quarter results. Profit advanced 9% to $2.2 million, or 19 cents a share, as revenue grew 14% to $38 million. Spectrum boasts a net cash position and its shares are cheap relative to those of peers.

4. Carbo Ceramics ( CRR), which makes ceramic proppant beads for natural-gas drilling, has jumped 20% since our Oct. 23 feature and 7% since a Dec. 7 reiteration. This company has carved a profitable niche by assisting hydraulic-fracturing drillers. Its stock ranks in the top 10% of our 5,000-plus coverage universe.

3. China telecom player Telestone Technologies ( TSTC) has returned 20% since TheStreet'sFeb. 9 article. During the past three years, Telestone has increased revenue 39% annually, on average, and boosted profit 34% a year. Its stock delivered 33% annualized gains over that period. Investors are awaiting fourth-quarter results.

2. Diamond Foods ( DMND), a seller of nuts and snacks, recently purchased Pop Secret and Kettle Chips. Its stock has soared 35% since TheStreet'sOct. 28 endorsement and 15% since its Jan. 15 reiteration. Diamond is getting a bit pricey due to the recent run-up, but acquisitions are likely to accelerate growth.

1. Drug-maker Perrigo ( PRGO) has surged 36% since our Jan. 25 pick. Its store-brand over-the-counter medications are a no-brainer in a tight-spending environment. The stock is cheap at a PEG ratio of 0.4, a discount relative to expected growth.

Shares of Telestone Technologies Corporation (Nasdaq:TSTC) were gapping down Tuesday morning with an open price 17.1% lower than Monday's closing price. The stock closed at $7 yesterday and opened today's trading at $5.80.

Shares of Telestone Technologies Corporation (Nasdaq:TSTC) were gapping up Wednesday morning with an open price 12.3% higher than Tuesday's closing price. The stock closed at $5.52 yesterday and opened today's trading at $6.20.

Shares of Telestone Technologies Corporation (Nasdaq:TSTC) have taken a tremendous swing upward. The stock is trading at $8.38 as of 1:22 p.m. ET, 20.4% above Friday's closing price of $6.96. Volume is at 1.2 million, 3.7 times the daily average of 329,700.